Finding 547580 (2024-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 351759
Organization: Newberry College (SC)
Auditor: Capincrouse LLC

AI Summary

  • Core Issue: The College failed to return unearned Title IV funds for 2 out of 26 students who withdrew, leading to a significant deficiency.
  • Impacted Requirements: This violates 34 CFR 668.22, which mandates timely return of Title IV funds.
  • Recommended Follow-Up: Review all students with zero credits at term's end to identify unofficial withdrawals and ensure necessary returns are made.

Finding Text

2024-003 Late Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid. Criteria: 34 CFR 668.22 Questioned Costs: $2,817 Context: Out of 26 students tested for timely return of Title IV funding, 2 students who withdrew before the 60% mark of the term did not have an R2T4 completed. This resulted in $2,817 of unsubsidized loans that need to be returned to the Department of Education. Cause: This was an oversight by the College. Effect: Returns of federal funding were not made. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend the College review all students with zero credits in a term at the end of the term to determine if they unofficially withdrew and if a return was necessary. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate Return of Title IV Funds (R2T4) Planned Corrective Action: The two students identified had calculations done correctly but the returns were late. These funds have been returned to the Department of Education. The director will coordinate with the registrar to receive a report of zero credits earned at the end of each semester. This review will ensure the Financial Aid Office is returning funds in a timely manner for students that do not officially withdraw. The online administration has a policy in place to alert the financial aid and registrar's office should a student miss more than seven-fourteen days of class. Administration meets on a bi-weekly basis to review official withdrawals and unofficial withdrawals whose date of determination have been noted. Person Responsible for Corrective Action Plan: Karen Benfield, Director of Financial Aid Anticipated Date of Completion: To be implemented at end of spring semester, 2025 (5/7/2025)

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 547579 2024-002
    Material Weakness Repeat
  • 547581 2024-004
    Significant Deficiency
  • 547582 2024-006
    -
  • 547583 2024-002
    Material Weakness Repeat
  • 547584 2024-005
    - Repeat
  • 547585 2024-007
    Significant Deficiency Repeat
  • 1124021 2024-002
    Material Weakness Repeat
  • 1124022 2024-003
    Significant Deficiency Repeat
  • 1124023 2024-004
    Significant Deficiency
  • 1124024 2024-006
    -
  • 1124025 2024-002
    Material Weakness Repeat
  • 1124026 2024-005
    - Repeat
  • 1124027 2024-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $24.20M
84.268 Federal Direct Student Loans $11.30M
84.063 Federal Pell Grant Program $4.43M
84.007 Federal Supplemental Educational Opportunity Grants $157,021
84.033 Federal Work-Study Program $71,453
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $32,062